Aer Lingus has rejected calls by Ryanair, its largest shareholder, for the Irish flag-carrier to pay a special dividend.

Colm Barrington, Aer Lingus chairman, has told Ryanair that the carrier’s board is sticking by its view of May’s annual meeting that a dividend should be considered once a “more durable” economic recovery is apparent.

Aer Lingus and Ryanair have been locked in a fractious relationship since Europe’s largest low-cost airline by revenue launched the first of two failed takeover bids in 2006. Both bids faltered after objections by the Irish government and European competition authorities.